Coke shaken by low-carb failure

Coca-Cola is restructuring its North American division as part of an attempt by the struggling soft drinks maker to pull itself out of a long slump.

The firm is parting company with Javier Benito, its chief marketing officer and head of retail in its most important market. Mr Benito had been with Coca-Cola for 10 years.

Analysts said he was probably paying the price for the disastrous US launch of C2, a mid-calorie, low carbohydrate version of the core brand.

In November, Coca-Cola sharply cut its long-term profit and sales targets, acknowledging there would be no quick fix for its problems.

Chief executive Neville Isdell, who took the top job last May, admitted then Coca-Cola had failed to respond to consumer trends. Arch-rival PepsiCo has been more adept.

It has the number one bottled water brand in the US, Aquafina, and the top energy drink, Gatorade.

Coca-Cola plans to spend an additional $350m (£187m) to $400m on marketing annually from next year, with most of it directed toward its core brand. It does not publish the level of its total budget. "We can't save our way to prosperity, we have to grow our way to prosperity," Mr Isdell said.

The firm said at the time there had been "too little attention paid to brand-building, iconic advertising".

C2 has proven to be a particular disappointment for Coca-Cola, posting poor sales. The company priced the soft drink at a premium to regular Coke and the higher cost proved an obstacle for consumers. It also launched the brand just as the low-carbohydrate diet phenomenon was waning.

Hindered by C2's poor performance, Coca-Cola reported a 3% drop in volume sales in North America during the third quarter, which covers the key summer season.

The company said Mr Benito's role would be split into two jobs in an effort to make it more competitive in North America. His marketing role will be taken by John Hackett, who becomes senior vice-president for North American marketing.